In a large bowl, beat cream cheese and confectioners' sugar until smooth. Beat in milk and pudding mix. Fold in 1-1/2 cups of whipped topping.
Place half of the cake cubes in a 3-qt. glass bowl. Layer with half of the berries and pudding mixture. Cover with remaining cake cubes. Layer with remaining berries and pudding mixture. Spread remaining whipped topping over top. Garnish with additional berries if desired. Store leftovers in the refrigerator.